LatAm Tech Weekly #175

Happy Sunday!

After the success of my first video on DeepSeek, I recorded another one this week covering the latest developments I’ve come across over the past two weeks. It’s fascinating to see how quickly things shift—just when you think you’ve grasped everything “relevant” (at least for the moment), the next day brings a flood of new updates.

Here’s a sneak peek at my latest video. If you’d like to watch the full version, click here! 

Follow me on LinkedIn , Instagram or X for daily updates!

Opinions expressed here are solely my own and does not represent those of people, institutions, organizations that I may or may not be associated with in any capacity, unless explicitly stated.

Moving to our usual market update, a recent article by Pitchbook shed light on the scenario of VC exits. After three years of weak IPO activity, VCs are struggling with a lack of liquidity. In 2024, US exit value was just $149 billion, marking the third consecutive year below 2018 levels. While exits have been rising, most involve smaller, less-publicized deals. Despite this, VC dealmaking showed resilience, with a 29% YoY increase to $209 billion invested, largely fueled by AI startups. However, IPOs remain crucial for VCs to recycle capital, as few companies can afford large acquisitions. The same is happening in Latin America. As a result, three things are happening: 

a) M&As have increased as they are an alternative for VC exits (more on this below)

b) Median time between rounds has lengthened

c) Insider rounds have risen

On (a), data by Carta showed that startups registered on the platform were the target in 642 M&A transactions during 2024, the highest annual total of the past six years. Amid a slower exit environment, some companies are still finding ways to generate liquidity for their shareholders. Global M&A saw strong growth in 2024, and I believe this momentum will continue this year. A great example is Corpay (Fleetcor)’s recent acquisition of Brazilian startup Gringo, backed by Kaszek, VEF, and Valor. Notably, Gringo was exclusively advised by Itaú BBA’s tech team—which I’m proud to be a part of!

Startup M&A activity surged across all stages in 2024. While granular data for Latin America isn't available, I believe the trend holds true for the region as well. These deals are largely driven by three key factors:

1️⃣ Survival: Struggling startups seek to merge with larger players to stay afloat.
2️⃣ Scaling for an IPO: Successful startups recognize that the bar for IPO readiness has risen, making M&A a strategic move to strengthen their case and reach the necessary scale.
3️⃣ Preemptive Exits: Well-performing, sizable startups pursue M&A before surpassing $1 billion, as fewer potential buyers exist beyond that threshold.

Monday

General news:

• OpenAI is developing its own AI chips to reduce reliance on Nvidia. The first prototypes will be sent to TSMC in the coming months, with mass production possible in 2025. If successful, this move could reshape the AI chip market and strengthen ties with alternative suppliers.
• Europe is ramping up its AI ambitions with a €150 billion initiative to support local AI champions. Led by General Catalyst, the plan aims to simplify regulations, boost infrastructure, and foster innovation. France is emerging as a key player, with Mistral investing billions in a data center and Macron announcing a €30–50 billion AI hub in partnership with the UAE. Brookfield also plans a €20 billion AI infrastructure investment in France.
• Itaú BBA was named Investment Bank of the Year in Brazil, dominating the debt markets in 2024. While equity markets struggled, debt issuance surged, expected to exceed R$500 billion. Itaú led with a 16.2% market share, up from 12% in 2023. M&A activity remained stable, driven by low stock prices, while high interest rates are expected to keep equities sluggish in 2025.
• Worldpay has appointed Juliana Borges de Campos as Vice President of Operations for Latin America. With over 20 years in the payments industry, she previously served as VP at Ebanx and held roles at Elo and Rede. Juliana will now lead the Acquiring and Receivables Anticipation Operations teams.
• ETHIX, a Chilean startup using AI to detect corruption in bidding processes, is expanding its impact. Founded by Iván Gauna and Iván Addolorato, the platform is already in use by 10 public agencies and five construction companies. Its AI-driven risk assessment reduces contract drafting time by 60%. With backing from Meta executives, ETHIX has reached a $1 million valuation.
• Apple and SpaceX are partnering to bring Starlink satellite connectivity to iPhones, enabling messaging in areas without mobile coverage. Launching with iOS 18.3, the feature is being tested in the U.S. with T-Mobile, with voice calls and internet access expected later. While a major step for global connectivity, telecom providers may still play a role due to speed and cost limitations.
• Elon Musk and investors have made a $97.4 billion unsolicited bid to take over OpenAI, aiming to merge it with xAI and return to an open-source model. Backed by Valor Equity Partners, Baron Capital, and others, the offer could rise if new bidders emerge. OpenAI has not responded, but Sam Altman dismissed the proposal with a joke on X. Meanwhile, OpenAI is reportedly seeking a $40 billion funding round at a potential $300 billion valuation, with SoftBank as a possible lead investor.
• Aiqfome, Magazine Luiza’s food delivery app, is expanding to challenge iFood. With 700+ cities, 6 million users, and R$1.3 billion in GMV, Aiqfome is now targeting larger markets with a new loyalty program integrated with Magalu. Its 2025 strategy includes expanding to 1,000 cities, adding categories like supermarkets and pharmacies, and offering a white-label delivery system for restaurants.

Deals:

• Vórtx DTVM, a fintech specializing in tech-driven corporate and trust services, secured Later Stage VC funding led by Treecorp Investimentos on Dec 1, 2024. The investment will accelerate growth and expand its technology-focused offerings.
• Brazilian healthtech Caveo has secured a pre-Series A funding round led by Kortex Ventures. Founded in 2021, Caveo offers a digital medical accounting platform designed to enhance the financial health of healthcare professionals and entities. The platform provides features such as digital accounting, tax payment management, service tracking, shift scheduling, invoice issuance, and company registration, delivering a transparent and efficient experience for managing financial and operational aspects of medical practices.
• Agroforestree, a climate tech focused on agroforestry for carbon offsetting, raised R$340K from FDC Angels. The investment will support international expansion, new monitoring technologies, and supply chain solutions. Ricardo Blandy joins the board, and the startup gains strategic mentorship from Fundação Dom Cabral.
• Niko.mx, a climate tech focused on energy solutions, raised $23 million in a round led by QED Investors. The funding includes $8 million in equity and $15 million in debt, supporting its goal of building Latin America’s largest decentralized energy network. The startup’s pay-as-you-go model and lifetime energy management target high-consumption SMEs in Mexico.

Tuesday

General news:

• Oracle NetSuite is launching new generative AI features in Brazil, including Text Enhance and AI-powered SuiteScript API. The updates will automate financial tasks, supply chain communications, and customer support. The company also confirmed plans to establish a physical infrastructure in Brazil by 2025, improving compliance tools and integrations like the Shopify connector.
• Meta is laying off 3,600 employees globally as part of a restructuring to prioritize AI and efficiency. The layoffs impact multiple departments, reflecting a broader tech industry trend. Meta aims to reallocate resources to AI projects while maintaining financial sustainability.
• Apple and Alibaba are partnering to bring AI features to iPhones in China. The collaboration aims to boost iPhone sales, which have suffered due to a lack of AI functionalities. The companies have submitted their co-developed AI features for regulatory approval in China, shifting away from Apple’s previous partnership with Baidu.
• Paris AI Summit: The U.S. and U.K. refused to sign a global declaration on ethical and secure AI development, citing concerns over excessive regulation. In contrast, China, India, and Germany endorsed the agreement. U.S. Vice President JD Vance emphasized the importance of minimizing regulatory barriers to foster innovation.
• Tecspal, a Uruguayan logistics startup, is expanding to China after establishing operations in 120 countries. The company, which specializes in managing remote employee equipment, is partnering with local firms to navigate regulatory and payment challenges. Santiago Alcuri, head of operations, will relocate to Manila to oversee the expansion, aligning with rising demand from U.S. companies hiring developers in Asia.
• Reversso, a Chilean e-commerce startup, has partnered with Uber Direct and Blue Express to launch on-demand product returns in 25+ cities. Customers can request a return through Reversso’s portal, and an Uber driver picks up the package within 20 minutes, reducing logistics time and carbon emissions. The pilot program in Chile is expected to expand across Latin America.
• Central Bank of Brazil will lead the financial track of BRICS in 2025, focusing on financial inclusion, innovation, and payment systems. The initiative aims to enhance cooperation among BRICS members and drive global financial development.

Deals:

• Alice, a Brazilian healthtech, raised $22 million in a Series C extension led by Kaszek, ThornTree, Canary, and Globo Ventures. After pivoting to B2B in 2023, Alice aims to reach 70K members and $120M in revenue by 2025, up from 42K members today. The funding strengthens Alice’s position, eliminating the need for new rounds in the short term.
• Jeitto has acquired fintech Pilla to expand into the private payroll loan market, adding 75K clients and 50 partner companies. With 10M users, half of whom are in formal jobs, Jeitto sees strong growth potential. The new business unit is expected to contribute 30% of revenue by 2026.
• CashU secured R$100 million through a FIDC backed by Itaú BBA and Credit Saison to expand SME lending operations in Brazil. The AI-driven fintech, which assesses credit risk in real-time, plans to reach R$1 billion in loans by 2025 and is preparing for a Series A round.
• iCred secured R$312 million through a FIDC to fund INSS payroll loans. Since inception, iCred has raised over R$2.5 billion via FIDCs, financing R$2.7 billion in 2024, up from R$1 billion in 2023. Serving 5,400+ municipalities, the fintech boasts 5 million customers and 2.5 million+ active contracts.
• BRITech has acquired IT4 Finance and Sisfinance to expand its investment management SaaS solutions. IT4 Finance, founded in 2012, specializes in middle and back-office solutions, while Sisfinance, founded in 2022, focuses on back-office systems for financial institutions. The deals strengthen BRITech’s product portfolio, marking its fifth acquisition since 2014.

Wednesday

General News:

• NG.Cash is absorbing Z1’s customer base, surpassing 6 million users and becoming the leading choice for under-18 accounts in Brazil. The transition strengthens NG.Cash’s position in the Gen Z fintech market, improving its ability to raise capital and expand offerings. Z1 will cease operations, with its founders stepping away. NG.Cash plans to integrate new features such as AI financial assistants, prepaid credit cards, and crypto trading. The migration begins on February 13.
• Auddas has appointed Alexandre Chaves as its new partner. With nearly 30 years of experience in security and tech, Chaves has built and sold companies, including C4i, which was acquired by Avantia in 2022. He also led international business missions at FIESP and specializes in innovation and AI. At Auddas, he will drive new ventures and strategic growth.
• SoftBank reported a $2.4 billion loss, mainly due to Vision Fund's performance, but remains committed to AI investments. Masayoshi Son is pushing ahead with the $500 billion Stargate project, securing funding primarily through debt. Despite market volatility, SoftBank holds $32.6 billion in cash and continues expanding AI bets, including OpenAI and Nvidia partnerships.
• Thomson Reuters is launching a $150 million Corporate Venture Capital (CVC) fund, doubling down on investments in legal tech, fintech, compliance, and AI. Following its initial $100 million fund, which backed 23 startups, the company aims to support Series A deals while remaining flexible for earlier and later-stage investments.
• Crawly, a Brazilian AI startup, has joined NVIDIA Inception, a global program providing access to advanced tools, networking, and technical expertise. Crawly focuses on AI-driven automation and plans to leverage NVIDIA’s GPUs and cloud resources to accelerate research and optimize business operations.
• NVIDIA's Inception program has grown to support 22,000 AI-focused startups globally, including 700+ in Brazil. The initiative offers mentorship, cloud credits, hardware discounts, and technical coaching without requiring equity stakes. Participants include Doris, an AI-powered virtual fitting room, and WideLabs, the creator of the Amazonia IA chatbot.
• Contactless payments in Brazil surged 48% in 2024, reaching R$1.5 trillion and accounting for 67.2% of in-person transactions. However, new Pix features, such as Pix by Approximation and Pix Automatic, may reshape this landscape. Despite growth in card transactions, Pix payments totaled nearly R$27 trillion last year, significantly outpacing card usage.
• Open Finance investment data sharing surged, reaching 1.81 billion API calls in December 2024, a 29x increase year-over-year. Investment APIs now represent 17% of total calls, up from 1% in 2023. The top data recipients are Caixa Econômica Federal and Mercado Pago, with the most accessed assets being bank fixed income (75%), stocks (12%), and investment funds (9%).
• Federal Reserve Chair Jerome Powell stated that the Fed will not develop a Digital Dollar during his tenure, aligning with Republican opposition to Central Bank Digital Currencies (CBDCs). Former President Donald Trump has already restricted progress on the issue, instead favoring stablecoins.
• Chile is developing Latam GPT, a large language model set to launch in June 2025. The AI will be public, open, and trained on Latin American data, ensuring regional applicability. Developed by the Ministry of Science, Technology, Knowledge, and Innovation in collaboration with Cenia, the initiative aligns with Chile’s national AI strategy.
• Telefónica is advancing the sale of its Argentina operations, attracting interest from five potential buyers, including América Móvil. The deal is estimated at $1.1 billion, with confidentiality agreements already signed. América Móvil has expressed interest but has yet to engage in negotiations.
• Stori, a Mexican unicorn, is expanding into sports finance by launching co-branded credit cards with Atlas FC and Santos Laguna. The $20 million initiative strengthens its connection with football fans in Jalisco and Coahuila. Benefits include 2% cashback, no annual fees, and a 99% approval rate.

Deals:

• Across Capital invested in Justpoint, an AI platform that identifies harmful substances in pharmaceuticals, chemicals, and consumer products before regulatory action. The startup leverages proprietary AI models and extensive medical data, aiming to improve health outcomes and reduce system costs.
• Quix, a Colombian-Argentine AI edtech startup, raised $350,000 in a pre-seed round, reaching a $3 million valuation. The company develops AI-powered corporate training, delivering personalized programs within 48 hours via platforms like WhatsApp, Slack, and Teams.
• Zapia, an AI startup by BrainLogic, has integrated DeepSeek into its platform, improving security and privacy with U.S.-based servers. With 3 million+ users and 200 million messages processed in 2024, Zapia is expanding across Latin America, particularly in Mexico.

Thursday

General news:

• iFood Pago, the digital bank of iFood, reached R$1.2 billion in revenue, exceeding projections by 20%, and aims for R$2.5 billion in 2025. To drive growth, it will launch a business credit card offering exclusive benefits to restaurants. The fintech serves 175,000 establishments, has provided over R$2 billion in loans, and plans to contribute 50% of iFood’s total revenue within five years by expanding payment solutions, credit offerings, and financial services.
• Startups in Brazil raised R$13.9 billion in 2024, marking a 50% increase from the previous year. Fintechs led with 38% of total funding, while AI startups secured R$5.8 billion, accounting for 42% of investments. M&A activity surged with 132 deals, up 124% from 2023. São Paulo remains the dominant hub, housing 49% of active startups, as international investors and market consolidation fuel growth.
• Brazilian Central Bank has proposed restricting fintechs from using “banco” or “bank” in their branding unless they hold a banking license. A public consultation is open until May 31 to enhance transparency. The rule would prohibit payment institutions from using terms that imply regulated banking activities without proper authorization.
• Braza Bank is expanding into credit and crypto while relocating its European headquarters from London to Lisbon. The bank plans to offer export-linked credit without intermediaries and position itself as crypto-friendly, complying with regulations while leveraging blockchain and smart contracts. Its Braza On app enables instant multi-currency transactions, while Braza Check-out facilitates BRL payments abroad with lower fees.
• Pix failures were reported on Thursday (Feb 13), with users experiencing instability across multiple banks and digital wallets. The Central Bank has not yet issued a statement, but DownDetector recorded over 2,300 complaints. This follows similar technical issues last week.
• Stone is ending its Sponsored BDR Level I program on B3, aiming for greater efficiency and flexibility. Investors can convert BDRs into Nasdaq shares, migrate to Unsponsored BDRs, or sell their shares. The decision reflects liquidity limitations and regulatory constraints on Sponsored BDRs.
• Banco Neon confirmed a data breach affecting some customers, warning users of potential scams. A hacker claims to have accessed 30 million records and demanded ransom. While the bank assures accounts remain secure, authorities have been notified, and security measures are being reinforced.
• Respeecher, an AI-powered voice technology company, is facing controversy over its use in the films Emilia Pérez and O Brutalista. The technology digitally recreates voices, raising ethical concerns over its potential impact on storytelling and portrayals of real individuals. The debate continues over the balance between creative freedom and its broader implications.
• Rocktruck is expanding in Chile after LipiAndes acquired 70% of the company. Revenue surged 49% to $20 million in 2024, with 22 new clients, including Nestlé and Cencosud. The startup scaled operations with a new 5,000m² warehouse and 30 electric trucks, aiming to lead sustainable logistics in Latin America.

Delas:

• Lunatic Monkey, a customer relationship intelligence platform, raised R$350,000 in a pre-seed round led by VENTIUR Smart Capital, ACI Startups, and Prado Tech. The AI-powered platform streamlines sales and post-sales processes, converting customer interactions into actionable insights. Founded by ex-Sympla and Ambev executives, the startup focuses on automation and predictive analytics.
• Kasa, a Peruvian fintech, is making real estate investment more accessible through a 100% digital platform that enables collective property investments. The startup, founded in 2024, aims for $1 million AUM in its first year and plans regional expansion. Backed by START Global, it raised $15,000 in equity-free funding and is preparing for a pre-seed round.

Friday

General news:

• TruckPag is expanding beyond fuel management to become a full fleet management ecosystem. CEO Kassio Seefeeld acquired a stake in GoTrucks, aiming to facilitate R$50 million in used vehicle sales in 2025. The company grew 50% in transaction volume in 2024 and plans to diversify revenue streams, including vehicle maintenance, toll payments, and tracking. Despite not seeking investment, TruckPag remains open to strategic partnerships. The GoTrucks deal has already boosted sales, reaching last year's total volume in January alone.
• Amazon, Microsoft, Google, and Meta are set to invest $320 billion in AI in 2025, up from $246 billion in 2024. Amazon leads with over $100 billion, followed by Microsoft ($80B), Google ($75B), and Meta ($60B–$65B). While China’s DeepSeek is disrupting the AI market, big techs are doubling down on AI infrastructure, chips, and computing power. Microsoft’s AI spending has surged 235% since 2022, while Google plans a 43% increase.
• Softplan has named Alex Anton as Executive Director of M&A and Strategy to drive business expansion. Anton, formerly at iFood, Movile, and McKinsey, has led over 30 startup investments in Latin America. Softplan has completed 12 acquisitions, 10 since 2020, and aims to strengthen leadership in SaaS and digital transformation through an aggressive M&A strategy.
• SONDA Brasil is expanding partnerships with startups to boost efficiency and address client challenges in logistics, healthcare, and finance. The company has refined its startup engagement strategy over the past three years, focusing on collaborations instead of acquisitions. AI is a key focus for 2024, with SONDA actively seeking partnerships in artificial intelligence solutions.
• Google mistakenly sent an earthquake alert to residents of São Paulo and Rio de Janeiro, causing panic at 2:20 AM. No seismic activity was recorded, prompting an Anatel investigation. Google apologized, temporarily disabled the system, and is reviewing the error. The alert system, which relies on smartphone sensors, raised concerns about private alerts bypassing government validation.
• TikTok has returned to US app stores after nearly a month-long removal by Apple and Google. The app had been taken down due to a national security law requiring its sale by 2025. Trump delayed the deadline, allowing operations to resume while a buyer is sought. A US sovereign fund may acquire 50% of TikTok’s US business, with Oracle and Microsoft among potential buyers.

Deals:

• Equity Fund Group, led by João Kepler, has invested in Clube do Presidente, an online shopping platform with 240,000+ customers and R$37 million in sales. The startup aims to reach 1 million users and R$50 million in sales by 2025. Plans include launching a new platform to enhance the user experience and centralize promotions. The company shares 300+ daily deals via WhatsApp and partners with major e-commerce brands.
• Agger has acquired 100% of Trindade Tecnologia, marking its second deal in a year and aiming to boost revenue by 20% in 2025. The acquisition expands Agger’s insurance offerings to health plans, now serving 86,000+ users and 16,200 brokers. Agger processes 50M+ quotes monthly across 41 insurers and 750 health operators. CEO Gabriel Ronacher will lead both firms, with Trindade’s directors staying on to strengthen strategic operations.
• Vivo closed 2024 with R$130 million in contracts with startups, a 30% increase from 2023. This includes investments via its corporate venture funds, Wayra and Vivo Ventures. Notable investments include ADA, Fiibo, Inspira, and Lend, with the latter receiving additional funding. Vivo also invested in Agrolend, CRMBonus, and Klubi, expanding financial services and startup partnerships.

Tech Events Radar

I have asked you again on LinkedIn what tech events do you suggest for this year, here is a selection of your responses curated by me for the first half of the year. If you want to see the full list click here.

SXSW (South by Southwest)

Dates: March 7-15

Location: Austin, Texas

Description: South by Southwest® dedicates itself to helping creative people achieve their goals. Founded in 1987 in Austin, Texas, SXSW® is best known for its conference and festivals that celebrate the convergence of tech, film, music, education, and culture

More info

South Summit

Dates: April 9-11

Location: Porto Alegre, Brazil

Overview: South Summit Brasil is one of the main innovation and technology events in Latin America, bringing together startups, investors, companies and global leaders to foster connections and explore business opportunities. Held annually in Porto Alegre, the event is an extension of the original South Summit, started in Madrid, and highlights the potential of the Brazilian and Latin American innovation ecosystem. With a program that includes lectures, panels and startup competitions, South Summit Brasil promotes the exchange of ideas, drives innovation and puts Brazil on the global technology map.

More info

Brazil at Silicon Valley

Date: April 21-23

Location: Sunnyvale, California

Overview: Brazil at Silicon Valley is an annual conference organized by Brazilian students from Stanford and Berkeley universities, with the aim of connecting the most influential Brazilian leaders and Silicon Valley. Held in California, the event brings together entrepreneurs, investors and academics to discuss the future of innovation and development in Brazil, addressing topics such as technology, sustainability and digital transformation, promoting dialogue between the Brazilian ecosystem and global trends.

INVITE ONLY

Latin American Forum by Riverwood

Dates: April 24-25

Location: Miami

Description: off the record gathering with the main stakeholders, founders, and service providers of the tech ecosystem in Latin America, organized by Riverwood.

INVITE ONLY

Web Summit Rio

Date: April 27-30

Location: Rio de Janeiro, Brazil

Web Summit Rio is the Brazilian edition of one of the largest global technology and innovation events, known for bringing together startups, investors, company leaders and sector enthusiasts. With a program that includes lectures from renowned experts, panels on emerging trends and networking opportunities, Web Summit Rio has established itself as a strategic space to boost ideas, promote partnerships and connect the global innovation ecosystem.

More info

Itau BBA Fifth Annual Tech Summit

Date: May 13

Location: New York

Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.

INVITE ONLY

APIX

Date: May 15

Location: São Paulo

Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.

MORE INFO SOON!!!

VTEX Day

Date: June 2-3

Location: São Paulo

Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.

More info

FEBRABAN Tech

Date: June 10-12

Location: São Paulo

Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.

More info

Others: Canary Summit 2025, H4Results 2025, AI Health Frontiers at Cubo (Sao Paulo), 16 events by StartSe, DeepTech Days (March), Argentina Tech Week (May)

What am I reading?

• Bay Area Times - Daily newsletter, I highly recommend it!
• Carta  - State of Private Markets: Q4 and 2024 in review
• TechCrunch - OpenAI postpones its o3 AI model in favor of a ‘unified’ next-gen release
• CoinDesk - Coinbase Q4 Earnings Expected to Show Best Volume Since 2021
• Distrito - Future Unicorns in Latin America

What am I  listening to? What am I watching?

• Netflix  - Apple Cider Vinegar
• Invest like the Best- Marc Andreessen: The Battle for Tech Supremacy 

Quote of the week:

“We hate the model picker as much as you do and want to return to magic unified intelligence” - Sam Altman